Appreciated property acquired by decedent by gift within 1 year of death
(1) In general
(1)In general#
In the case of a decedent dying after December 31, 1981 , if—
(A) appreciated property was acquired by the decedent by gift during the 1-year period ending on the date of the decedent’s death, and
(B) such property is acquired from the decedent by (or passes from the decedent to) the donor of such property (or the spouse of such donor),
the basis of such property in the hands of such donor (or spouse) shall be the adjusted basis of such property in the hands of the decedent immediately before the death of the decedent.
(1)(A)#
appreciated property was acquired by the decedent by gift during the 1-year period ending on the date of the decedent’s death, and
(1)(B)#
such property is acquired from the decedent by (or passes from the decedent to) the donor of such property (or the spouse of such donor),
(2)Definitions#
For purposes of paragraph (1)—
(A) Appreciated property The term “appreciated property” means any property if the fair market value of such property on the day it was transferred to the decedent by gift exceeds its adjusted basis.
(B) Treatment of certain property sold by estate In the case of any appreciated property described in subparagraph (A) of paragraph (1) sold by the estate of the decedent or by a trust of which the decedent was the grantor, rules similar to the rules of paragraph (1) shall apply to the extent the donor of such property (or the spouse of such donor) is entitled to the proceeds from such sale.
(2)(A)Appreciated property#
The term “appreciated property” means any property if the fair market value of such property on the day it was transferred to the decedent by gift exceeds its adjusted basis.
(2)(B)Treatment of certain property sold by estate#
In the case of any appreciated property described in subparagraph (A) of paragraph (1) sold by the estate of the decedent or by a trust of which the decedent was the grantor, rules similar to the rules of paragraph (1) shall apply to the extent the donor of such property (or the spouse of such donor) is entitled to the proceeds from such sale.